THREE Swindon pubs will cut the price of food and drink in a push to permanently reduce VAT for the hospitality industry.

The Sir Daniel Arms, The Savoy and The Dockle Farmhouse will have their prices cut by 7.5 per cent on Thursday, September 23 for Tax Equality Day.

So, for example, a pint of beer costing £1.99 will be reduced to £1.84 and a traditional breakfast costing £3.59 will cost £3.32 on the day.

All food and drink in pubs is currently subject to five per cent VAT as a result of the VAT cut by the Chancellor in July 2020.

But this will change on October 1, when the VAT rate will rise to 12.5 per cent and the government aim to return VAT to 20 per cent, in stages, in 2022.

By comparison, supermarkets pay zero VAT on food and use that saving to sell alcohol for less.

The Dockle Farmhouse manager Nicole Calver, said: "It is unfair that supermarkets pay zero VAT on food, but pubs and restaurants, in normal circumstances, pay 20 per cent. Pubs have been under fantastic pressure for decades due to the tax disadvantages it has with supermarkets.

"Customers coming to The Dockle Farmhouse on Thursday September 23 will find the price of their food and drink is lower than normal.

"However, as a result of the VAT increase to 12.5 per cent on October 1, we will have to increase food prices. Therefore, on Wednesday September 29, we will increase prices on our meals by 50p.

"We urge the Chancellor to create tax equality between pubs and supermarkets by making the current VAT regime for pubs permanent."